Consider a perfectly competitive labor market in which the demand for labor is given by E = 30,000-(2,000/3)W, and the supply of labor is given by E -8,000+2,000W. In these equations, E is the number of employee-hours per day, and W is the hourly wage. a. What is the equilibrium number of employee-hours each day? Instructions: Enter your response as a whole number. employee-hours each day In equilibrium, what was the dollar value of the additional output generated by the last employee-hour hired in the market? Instructions: Enter your response rounded to the nearest penny (two decimal places). $ b. Suppose the government imposes a minimum wage of $24 per hour. What will be the resulting number of employee-hours after the imposition of this minimum wage? Instructions: Enter your response as a whole number. employee-hours each day The minimum wage will (Click to select) workers' total earnings and will (Click to select) total economic surplus.
Consider a perfectly competitive labor market in which the demand for labor is given by E = 30,000-(2,000/3)W, and the supply of labor is given by E -8,000+2,000W. In these equations, E is the number of employee-hours per day, and W is the hourly wage. a. What is the equilibrium number of employee-hours each day? Instructions: Enter your response as a whole number. employee-hours each day In equilibrium, what was the dollar value of the additional output generated by the last employee-hour hired in the market? Instructions: Enter your response rounded to the nearest penny (two decimal places). $ b. Suppose the government imposes a minimum wage of $24 per hour. What will be the resulting number of employee-hours after the imposition of this minimum wage? Instructions: Enter your response as a whole number. employee-hours each day The minimum wage will (Click to select) workers' total earnings and will (Click to select) total economic surplus.
Chapter16: The Markets For Labor, Capital, And Land
Section: Chapter Questions
Problem 13P
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Transcribed Image Text:Consider a perfectly competitive labor market in which the demand for labor is given by E = 30,000-(2,000/3)W, and the supply of
labor is given by E -8,000+2,000W. In these equations, E is the number of employee-hours per day, and W is the hourly wage.
a. What is the equilibrium number of employee-hours each day?
Instructions: Enter your response as a whole number.
employee-hours each day
In equilibrium, what was the dollar value of the additional output generated by the last employee-hour hired in the market?
Instructions: Enter your response rounded to the nearest penny (two decimal places).
$
b. Suppose the government imposes a minimum wage of $24 per hour. What will be the resulting number of employee-hours after the
imposition of this minimum wage?
Instructions: Enter your response as a whole number.
employee-hours each day
The minimum wage will (Click to select) workers' total earnings and will (Click to select) total economic surplus.
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